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> I really do not understand how the transaction malleability bug could have lost 40% of their fiat deposits. At what point, given normal business conditions,
by choult 13y ago
> I really do not understand how the transaction malleability bug could have lost 40% of their fiat deposits.
At what point, given normal business conditions, would you need to hold 100% of deposits? You only need enough to cover withdrawals; ignoring the MtGox issues 60% seems quite reasonable.
The only time you'd need to worry about 100% is if you're anticipating a total run on deposits or you're going to close the bank.
- jordanthoms 13y agoMt Gox wasn't (at least not openly) a fractional reserve bank - they need to have 100% of the customer funds on hand at all times.
- commandar 13y ago>At what point, given normal business conditions, would you need to hold 100% of deposits? At the point where you're not a lending bank, which Gox is not. They shouldn't have been running a fractional reserve at all.